Making a tip-off

We are committed to tackling phoenix, tax evasion and black economy behaviour and protecting honest businesses and the community.

Making a tip-off is not just limited to tax issues – we want to hear when someone is gaining a competitive advantage over those who are doing the right thing. If you are concerned that you or someone you know is doing the wrong thing, you can tell us about it.

To report any known or suspected phoenix, tax evasion or black economy behaviour you can either:

illegal phoenixing – deliberately liquidating and re-forming a business to avoid obligations

involvement in tax avoidance schemes that go beyond the policy intent of the law and involve deliberate steps to avoid the tax and super systems

excise evasion

money laundering

unregulated gambling

counterfeit goods.

Examples of concerns you may have

You might be offered:

a discount for cash, a cash deal or a 'cashy', without a receipt or a discount for cash/mates rates

a job for cash wages, without payslips or superannuation entitlements

an arrangement that promises tax benefits, such as inflating or artificially creating deductions.

You might see someone:

not ringing up a sale on their till or keeping the till drawer open

paying cash wages

having two sets of books

deleting transactions on the point of sale system

avoiding paying child support or other obligations

not declaring all of their income

claiming work-related expenses they are not entitled to

advertising a tax planning scheme that is outside the spirit of the law

failing to lodge returns or keep records.

Other examples may include:

business owners claiming personal expenses on a business account so they can claim deductions

business owners not lodging their activity statement or tax returns

business owners that are paying their employees late or less than they should

business owners that aren't paying superannuation or other employee entitlements

tax professionals encouraging you to claim incorrect or inflated deductions, or to hide or incorrectly change income that you should be reporting. If you are concerned about the conduct of a tax professional, you should also complain to the Tax Practitioners BoardExternal Link.

Tax professionals who are concerned about the conduct of another tax professional

As a tax professional, you might:

see others representing themselves as tax professionals when they are not

How to make a good tip-off

When making a tip-off, the more information you give us, the better we can work to protect honest businesses and the community. Even if you only know partial details or can only complete some sections of the tip-off form, this information is still very useful.

If you are reporting an individual, useful information includes:

their name

address

phone number

social media details (for example, user names and profile addresses).

If you are reporting a business, useful information includes:

name of the business

Australian business number (ABN)

business address

phone number

website

social media details (for example, page name and profile addresses).

Other useful information includes:

information on a group or network if there is more than one person or entity involved

details of the behaviour you have identified, such as:

hiding income

creating false expenses or tax deductions

not lodging tax returns or activity statements

encouraging payment in cash with no receipt

their income not supporting their lifestyle

not paying correct super to employees

using someone else’s identity to claim refunds

creating false or fraudulent documents or records

deliberately liquidating and re-forming a business to avoid obligations

presenting an employment relationship as a contracting arrangement

undertaking unusual activities that do not seem right, such as crop growing or selling plain packet tobacco

giving financial/legal tax advice that does not seem right.

How to report

It only takes a few minutes to make a tip-off. If you know or suspect phoenix, tax evasion or black economy activity report it by:

Remember to make note of the reference number when you submit your tip-off form. You will need to quote it if you want to add any information later.

Our response – the results

When we receive information through a tip-off, we will cross check the information and assess whether further action is required.

Factors such as the amount of detail provided will help us assess your tip-off and allow us to take action where appropriate.

Due to privacy laws, we won’t be able to inform you of the outcome of the information you provide. We also won’t be able to provide you with progress updates. Rest assured we take all information seriously.

Recent cases

Below are examples of tip-offs we received from the community, where sufficient information allowed us to undertake an investigation.

A fast food shop was reported for paying cash wages to its employees and not reporting all of its income. As a result of a tip-off, we audited the business and found that it had under-reported large amounts of income and PAYG withholding tax. The business owner was prosecuted and convicted of 13 charges of recklessly making false statements.

End of example

Example 2 – Security company avoids its employee obligations

A number of tip-offs were received that suggested a company was undertaking a number of unfair behaviours such as forcing employees to work as contractors, paying ‘cash in hand wages’, not paying the correct amounts or any super and not meeting a number of tax and regulatory obligations. An investigation resulted in a significant amount of tax, penalties and interest being applied to the business.

End of example

Example 3 – Social media gives us access to information

A member of the community made a tip-off about a taxpayer who had bragged on Facebook about inflating their income tax refund by claiming deductions they were not entitled to. The individual’s age, locality, occupation and high school details were obtained from their Facebook profile. Our investigation resulted in amendments to the deductions and offsets claimed by the taxpayer over two years of tax returns. The taxpayer was required to pay under-reported income tax and shortfall interest charge.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.